Rainbow Estates Limited Company Accounts

RAINBOW ESTATES LIMITED - Company Information

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COMPANY REGISTRATION NUMBER: 07930620

RAINBOW ESTATES LIMITED

UNAUDITED FINANCIAL STATEMENTS

31 January 2018

RAINBOW ESTATES LIMITED

FINANCIAL STATEMENTS

YEAR ENDED 31 JANUARY 2018

Contents	Pages

Officers and professional advisers	1

Chartered accountant's report to the board of directors on the preparation of the unaudited statutory financial statements	2

Statement of financial position	3 to 4

Notes to the financial statements	5 to 8

RAINBOW ESTATES LIMITED

OFFICERS AND PROFESSIONAL ADVISERS

The board of directors	D Davies
	S Davies
	R Davies
	N L Bailey

Registered office	Hanover Buildings
	11-13 Hanover Street
	Liverpool
	Merseyside
	United Kingdom
	L1 3DN

Accountants	ERC Accountants & Business Advisers Limited
	Chartered accountant
	Hanover Buildings
	11-13 Hanover Street
	Liverpool
	L1 3DN

RAINBOW ESTATES LIMITED

CHARTERED ACCOUNTANT'S REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF RAINBOW ESTATES LIMITED

YEAR ENDED 31 JANUARY 2018

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Rainbow Estates Limited for the year ended 31 January 2018, which comprise the statement of financial position and the related notes from the company's accounting records and from information and explanations you have given us. As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at www.icaew.com/en/membership/regulations-standards-and-guidance. This report is made solely to the Board of Directors of Rainbow Estates Limited, as a body, in accordance with the terms of our engagement letter dated 4 January 2018. Our work has been undertaken solely to prepare for your approval the financial statements of Rainbow Estates Limited and state those matters that we have agreed to state to you, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF as detailed at www.icaew.com/compilation. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Rainbow Estates Limited and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that Rainbow Estates Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Rainbow Estates Limited. You consider that Rainbow Estates Limited is exempt from the statutory audit requirement for the year. We have not been instructed to carry out an audit or a review of the financial statements of Rainbow Estates Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

ERC Accountants & Business Advisers Limited Chartered accountant

Hanover Buildings 11-13 Hanover Street Liverpool L1 3DN

22 March 2018

RAINBOW ESTATES LIMITED

STATEMENT OF FINANCIAL POSITION

31 January 2018

	2018		2017
Note	£	£	£

FIXED ASSETS

Tangible assets	5		985,000	985,000

CURRENT ASSETS

Debtors	6	33,542	49,319
Cash at bank and in hand		4,946	5,241
		---------	---------
		38,488	54,560

CREDITORS: Amounts falling due within one year	7	169,977		175,119
		----------		----------
NET CURRENT LIABILITIES			131,489	120,559
			----------	----------
TOTAL ASSETS LESS CURRENT LIABILITIES			853,511	864,441

CREDITORS: Amounts falling due after more than one year	8		137,577	137,577

PROVISIONS

Taxation including deferred tax	141,605	141,605
	----------	----------
NET ASSETS	574,329	585,259
	----------	----------

RAINBOW ESTATES LIMITED

STATEMENT OF FINANCIAL POSITION (continued)

31 January 2018

	2018		2017
Note	£	£	£

CAPITAL AND RESERVES

Called up share capital	100	100
Profit and loss account	574,229	585,159
	----------	----------
SHAREHOLDERS FUNDS	574,329	585,259
	----------	----------

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.

For the year ending 31 January 2018 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 ;

- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .

These financial statements were approved by the board of directors and authorised for issue on 22 March 2018 , and are signed on behalf of the board by:

D Davies

Director

Company registration number: 07930620

RAINBOW ESTATES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 JANUARY 2018

1. GENERAL INFORMATION

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Hanover Buildings, 11-13 Hanover Street, Liverpool, Merseyside, L1 3DN, United Kingdom.

2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. ACCOUNTING POLICIES

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Revenue recognition

The turnover shown in the profit and loss account represents amounts invoiced during the year in relation to residential property rental.

Corporation tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference. Deferred tax is recognised in respect of all material timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more tax.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities.

Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.

Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.

4. EMPLOYEE NUMBERS

The average number of persons employed by the company during the year amounted to 3 (2017: 3 ).

5. TANGIBLE ASSETS

	Freehold property
	£

Cost
At 1 February 2017 and 31 January 2018	985,000
	----------
Depreciation
At 1 February 2017 and 31 January 2018	–
	----------
Carrying amount
At 31 January 2018	985,000
	----------
At 31 January 2017	985,000
	----------

The investment properties were valued at £985,000 which is considered to be their fair value at the 31 January 2018 by the director, Mr D Davies .

6. DEBTORS

	2018	2017
	£	£

Other debtors	33,542	49,319
	---------	---------

7. CREDITORS: Amounts falling due within one year

	2018	2017
	£	£

Bank loans and overdrafts	7,500	15,000
Corporation tax	3,336	4,258
Other creditors	159,141	155,861
	----------	----------
	169,977	175,119
	----------	----------

The bank loan is secured by fixed and floating charges dated 20 October 2014 over all the company's undertaking, property, rights and assets whatsoever and wheresoever both present and future.

8. CREDITORS: Amounts falling due after more than one year

	2018	2017
	£	£

Bank loans and overdrafts	137,577	137,577
	----------	----------

The bank loan is secured by fixed and floating charges dated 20 October 2014 over all the company's undertaking, property, rights and assets whatsoever and wheresoever both present and future.

9. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

No directors received advances, credits or guarantee during the current or previous accounting periods.

10. RELATED PARTY TRANSACTIONS

The following related party transactions were undertaken during the year: A director introduced £nil and withdrew £ 21,720 (2017: introduced £52,000 and paid expenses on behalf of the company in the sum of £8,970). At 31 January 2018 the balance payable was £ 123,331 (2017: payable £145,051). A director introduced £ 14,250 (2017: introduced £Nil). At 31 January 2018 the balance payable was £ 14,750 (2017: payable £500). A director introduced £ 14,250 (2017: introduced £Nil). At 31 January 2018 the balance payable was £ 15,250 (2017: payable £1,000). A director introduced £ 5,000 . At 31 January 2018 the balance payable was £ 5,000 . No interest has been charged to the company in respect of these loans which are repayable on demand and classified in creditors due within one year. Dividends were paid to the directors in respect of their shareholdings totalling £25,000 (2017: £Nil). No further transactions with related parties were undertaken such as are required to be disclosed in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

11. PROFIT AND LOSS RESERVE ACCOUNT

	2018	2017
	£	£
Profit and loss distributable	585,159	562,579
Profit and loss non-distributable	(701,090)	(701,090)
	-------------	-------------
Reserves carried forward	1,286,249	1,263,669
	-------------	-------------